KUALA LUMPUR (Nov 27): Shareholders of FGV Holdings Bhd have agreed to the revised fee structure for the group's board of directors at an extraordinary general meeting (EGM) today.
The revision entails the reduction of fees payable for the financial year ended Dec 31, 2018 (FY18) to RM1.1 million, along with RM490,272 in board committee fees.
At the meeting, 99.96% of votes cast were for the passing of the six resolutions relating to the remuneration of its non-executive chairman and directors.
"The main change [in the remuneration structure] is the cutting of the chairman's fees by 50% to RM300,000 from RM600,000 previously. The directors' fees remain the same at RM120,000," FGV group CEO Datuk Haris Fadzilah Hassan told the press after the conclusion of the EGM.
The revised fee for the chairman will take effect from the start of the financial year ended Dec 31, 2018, until FGV's next annual general meeting (AGM) in 2020.
He added that the group will also be reducing the payment of benefits payable to the non-executive chairman and non-executive directors.
Haris noted that FGV non-executive chairman Datuk Wira Azhar Abdul Hamid had previously waived some of his benefits for FY18, and said the outcome of this EGM means that the benefits will officially be reduced going forward.
These comprise removing the option to use a company car, entitlement to home security, option for escort and one escort vehicle, reducing the number of personal bodyguards from two to one, removing the entitlement to leave passage of RM50,000 per annum and entitlement to one mobile phone every three years.
Haris said there were some consultations held between the company and its major shareholders following the last AGM in June, when the shareholders had voted against several resolutions on FGV directors' remuneration.
Its major shareholders Federal Land Development Authority (Felda), Koperasi Permodalan Felda Malaysia Bhd and the Armed Forces Fund Board voted against the resolutions for the payment of RM2.55 million in directors' fees and RM1.18 million for non-executive directors.
Meanwhile, the Employees Provident Fund had abstained from voting at the AGM.
"We had discussions with the major shareholders to understand their concerns and the revised remuneration structure is the result of the discussions. It is also in line with what other GLCs have adopted," said Haris.
Now that the issue is settled, Haris said the board and management can move on and focus on FGV's transformation programme.
"The board has been tasked with fixing historical problems at FGV. They have been working hard to restore shareholders' value that was destroyed previously.
"With this issue settled, we can now focus on our transformation programme," he added.
At 12.30pm, FGV shares fell 7 sen or 5.34% to RM1.24, giving a market capitalisation of RM3.65 billion.